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SERVICE MARKETING TRIANGLE




Service marketing triangle involves 3 types of marketing:
1. EXTERNAL MARKETING
2. INTERNAL MARKETING
3. INTERACTIVE MARKETING

   1. External Marketing: "Setting the Promise"

   · Marketing to END-USERS.
   · Involves pricing strategy, promotional activities, and all communication with
   customers.
   · Performed to capture the attention of the market, and arouse interest in the service.

   2. Internal Marketing: "Enabling the Promise"

   · Marketing to EMPLOYEES.
   · Involves training, motivational, and teamwork programs, and all communication
   with
   employees.
   · Performed to enable employees to perform the service effectively, and keep up the
   promise made to the customer.

   3. Interactive Marketing: (Moment of Truth, Service Encounter)

   · this refers to the decisive moment of interaction between the front-office employees
   and customers, i.e. delivery of service.
   · This step is of utmost importance, because if the employee falters at this level, all
   prior
   efforts made towards establishing a relationship with the customer, would be wasted.
SERVICE MARKETING MIX (7PS)
Product: The term “product” used to describe either a manufactured good or service.
      Service products refer to an activity or benefit that a service provider offers to
      perform for customers. A product in service marketing mix is intangible in nature.
      Service product can not be measured as well as they are heterogeneous, perishable
      and             can            not             be             owned.

       Price: Pricing is one of the P’s in the marketing mix which has received much
       less attention in service firms. Pricing of services is tougher than pricing of goods.
       Thus, service marketers must set prices that target customers are willing and able
       to pay. Almost every service has its own price terminology, unlike in
       manufactured goods where price is not varied enough for different product items
       and                       market                        segments.

       Place: Place in case of services determine where the service product is going to
       be located. Services must be created and sold at the same time, since service
       delivery is concurrent with its production and cannot be stored or transported.

       Promotion: Services are easy to be duplicated therefore promotions are becoming
       a critical aspect in the service marketing mix. The promotion element of the
       services marketing mix forms a important role in communicating the positioning
       of the service to customers. Promotion provides significance to services by adding
       tangibility to service and help the customer make a better evaluation of the
       service.


People: People are an essential ingredient in service provision; recruiting and training the
right staff is required to create a competitive advantage. Customers make judgments
about service provision and delivery based on the people representing your organization.
This is because people are one of the few elements of the service that customers can see
and interact with. The praise received by the volunteers (games makers) for the London
2012 Olympics and Paralympics demonstrates the powerful effect people can create
during service delivery.

Staff require appropriate interpersonal skills, aptititude, and service knowledge in order
to deliver a quality service. In the UK many organizations apply for the "Investors in
People" Accreditation to demonstrate that they train their staff to prescribed standards
and best practices.

Process: This element of the marketing mix looks at the systems used to deliver the
service. Imagine you walk into Burger shop and order a Whopper Meal and you get it
delivered within 2 minutes. What was the process that allowed you to obtain an efficient
service delivery? Banks that send out Credit Cards automatically when their customer’s
old one has expired again require an efficient process to identify expiry dates and
renewal. An efficient service that replaces old credit cards will foster consumer loyalty
and confidence in the company. All services need to be underpinned by clearly defined
and efficient processes. This will avoid confusion and promote a consistent service. In
other words processes mean that everybody knows what to do and how to do it.

Physical Evidence (Physical Environment)

Physical evidence is about where the service is being delivered from. It is particularly
relevant to retailers operating out of shops. This element of the marketing mix will
distinguish a company from its competitors. Physical evidence can be used to charge a
premium price for a service and establish a positive experience. For example all hotels
provide a bed to sleep on but one of the things affecting the price charged, is the
condition of the room (physical evidence) holding the bed. Customers will make
judgments about the organisation based on the physical evidence. For example if you
walk into a restaurant you expect a clean and friendly environment, if the restaurant is
smelly or dirty, customers are likely to walk out. This is before they have even received
the service.

Summary

The Service Marketing Mix involves Product, Price, Place, Promotion, People, Process
and Physical Evidence. Firms marketing a service need to get each of these elements
correct. The marketing mix for a service has additional elements because the
characteristics of a service are different to the characteristics of a product.

The Characteristics of a service are:

(1) Lack of ownership
(2) Intangibility
(3) Inseparability
(4) Perishability
(5) Heterogeneity.

To certain extent managing services are more complicated then managing products,
products can be standardized, to standardize a service is more difficult as there it can be
affected by factors outside the service providers control.
Services

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Services

  • 1. SERVICE MARKETING TRIANGLE Service marketing triangle involves 3 types of marketing: 1. EXTERNAL MARKETING 2. INTERNAL MARKETING 3. INTERACTIVE MARKETING 1. External Marketing: "Setting the Promise" · Marketing to END-USERS. · Involves pricing strategy, promotional activities, and all communication with customers. · Performed to capture the attention of the market, and arouse interest in the service. 2. Internal Marketing: "Enabling the Promise" · Marketing to EMPLOYEES. · Involves training, motivational, and teamwork programs, and all communication with employees. · Performed to enable employees to perform the service effectively, and keep up the promise made to the customer. 3. Interactive Marketing: (Moment of Truth, Service Encounter) · this refers to the decisive moment of interaction between the front-office employees and customers, i.e. delivery of service. · This step is of utmost importance, because if the employee falters at this level, all prior efforts made towards establishing a relationship with the customer, would be wasted.
  • 2. SERVICE MARKETING MIX (7PS) Product: The term “product” used to describe either a manufactured good or service. Service products refer to an activity or benefit that a service provider offers to perform for customers. A product in service marketing mix is intangible in nature. Service product can not be measured as well as they are heterogeneous, perishable and can not be owned. Price: Pricing is one of the P’s in the marketing mix which has received much less attention in service firms. Pricing of services is tougher than pricing of goods. Thus, service marketers must set prices that target customers are willing and able to pay. Almost every service has its own price terminology, unlike in manufactured goods where price is not varied enough for different product items and market segments. Place: Place in case of services determine where the service product is going to be located. Services must be created and sold at the same time, since service delivery is concurrent with its production and cannot be stored or transported. Promotion: Services are easy to be duplicated therefore promotions are becoming a critical aspect in the service marketing mix. The promotion element of the services marketing mix forms a important role in communicating the positioning of the service to customers. Promotion provides significance to services by adding tangibility to service and help the customer make a better evaluation of the service. People: People are an essential ingredient in service provision; recruiting and training the right staff is required to create a competitive advantage. Customers make judgments about service provision and delivery based on the people representing your organization. This is because people are one of the few elements of the service that customers can see and interact with. The praise received by the volunteers (games makers) for the London 2012 Olympics and Paralympics demonstrates the powerful effect people can create during service delivery. Staff require appropriate interpersonal skills, aptititude, and service knowledge in order to deliver a quality service. In the UK many organizations apply for the "Investors in People" Accreditation to demonstrate that they train their staff to prescribed standards and best practices. Process: This element of the marketing mix looks at the systems used to deliver the service. Imagine you walk into Burger shop and order a Whopper Meal and you get it delivered within 2 minutes. What was the process that allowed you to obtain an efficient service delivery? Banks that send out Credit Cards automatically when their customer’s old one has expired again require an efficient process to identify expiry dates and
  • 3. renewal. An efficient service that replaces old credit cards will foster consumer loyalty and confidence in the company. All services need to be underpinned by clearly defined and efficient processes. This will avoid confusion and promote a consistent service. In other words processes mean that everybody knows what to do and how to do it. Physical Evidence (Physical Environment) Physical evidence is about where the service is being delivered from. It is particularly relevant to retailers operating out of shops. This element of the marketing mix will distinguish a company from its competitors. Physical evidence can be used to charge a premium price for a service and establish a positive experience. For example all hotels provide a bed to sleep on but one of the things affecting the price charged, is the condition of the room (physical evidence) holding the bed. Customers will make judgments about the organisation based on the physical evidence. For example if you walk into a restaurant you expect a clean and friendly environment, if the restaurant is smelly or dirty, customers are likely to walk out. This is before they have even received the service. Summary The Service Marketing Mix involves Product, Price, Place, Promotion, People, Process and Physical Evidence. Firms marketing a service need to get each of these elements correct. The marketing mix for a service has additional elements because the characteristics of a service are different to the characteristics of a product. The Characteristics of a service are: (1) Lack of ownership (2) Intangibility (3) Inseparability (4) Perishability (5) Heterogeneity. To certain extent managing services are more complicated then managing products, products can be standardized, to standardize a service is more difficult as there it can be affected by factors outside the service providers control.